UWM Holdings Corporation (NYSE:UWMC) is one of the 13 Best American Penny Stocks to Invest In. On January 6, Goldman Sachs reduced its price target on UWM Holdings Corporation (NYSE:UWMC) from $6 to $5 and maintained a Neutral rating on the stock. Goldman Sachs noted that regional banks have lagged the broader market by 200 to 300 basis points in 2025 due to macroeconomic concerns and credit risks. The research firm noted that the sector still experienced a 13% rally later in the year. Looking ahead to 20 ...

One of the nation’s largest wholesale mortgage lenders reported a significant insider sale amid a year of declining share prices.Mat Ishbia, President and CEO of UWM Holdings Corporation (UWMC 3.75%), reported the indirect sale of 1,898,622 shares of Common Stock across three open-market transactions from Feb. 10 through Feb. 12, 2026, for nearly $9 million as disclosed in the SEC Form 4 filing. Transaction summaryMetricValueShares sold (indirect)1,898,622Transaction value$8,999,468 millionPost-transaction ...

Core Insights - The CEO of UWM Holdings Corporation, Mat Ishbia, sold 1,898,622 shares of Class A Common Stock over five days, with a total transaction value of $11.14 million [1][2] - The sale was part of a planned strategy under a 10b5-1 Plan, which allows insiders to schedule share transactions to mitigate insider trading concerns [8] Company Overview - UWM Holdings Corporation is a leading mortgage lender in the U.S., focusing on the origination of residential loans through a broker-focused wholesale channel [5] - The company reported a revenue of $2.7 billion and a net income of $16.89 million for the trailing twelve months (TTM) [4] - The dividend yield stands at 8.15%, with a 1-year price change of -20.16% as of January 31, 2026 [4] Transaction Details - The transaction involved the conversion of UWM Paired Interests into Class A Common Stock, with all shares sold through SFS Holding Corp, controlled by Mat Ishbia [6][8] - Post-transaction, Mat Ishbia retains 279,989 shares directly, while indirect holdings decreased by 25.32% [6] - The size of the sale aligns with Ishbia's recent selling patterns, being close to the median size of his previous transactions [6] Market Context - UWM's share prices have declined approximately 50% over the last five years, reflecting challenges in the mortgage loan market [9] - Despite recent Fed rate cuts aimed at lowering loan rates, the mortgage loan market continues to experience low loan volumes, indicating ongoing struggles for the company [9]

Core Viewpoint - The proposed sale of Two Harbors Investment Corp. to UWM Holdings Corporation is under investigation to assess whether the transaction adequately values the company and the process leading to it is appropriate [1]. Group 1: Transaction Details - Shareholders of Two Harbors will receive 2.3328 shares of UWM Class A Common Stock for each share of Two Harbors they own as part of the proposed transaction [1]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the proposed sale to determine if the consideration undervalues Two Harbors Investment Corp. [1]. - The law firm is inviting shareholders who believe the transaction undervalues the company to discuss their legal rights regarding the proposed sale [2].

Core Viewpoint - UWM Holdings is positioned for a potential recovery due to macroeconomic changes and a pending merger, despite past declines in performance and share price [1][2]. Macroeconomic Factors - The housing market is showing signs of recovery, with mortgage rates at a three-year low, which could enhance UWM's operating performance [3]. - A potential repurchase of $200 billion in mortgage bonds by representatives of President Trump could further influence mortgage rates positively [4]. Company-Specific Catalysts - UWM is undergoing a significant shift towards AI and automation, which could result in cost savings exceeding $100 million [8]. - The planned acquisition of Two Harbors Investment could yield annual growth synergies of up to $150 million [9]. Stock Performance and Valuation - UWM Holdings has seen a nearly 40% increase in stock price since the beginning of the year, currently trading at approximately 13.5 times forward earnings, indicating it is fairly priced compared to other mortgage-focused financial stocks [10]. - Upcoming Q4 2025 earnings report could further elevate expectations and stock price, especially if strong results and promising guidance are provided [11].

Group 1 - Galaxy Digital Inc. (GLXY) is currently outperforming its Finance peers with a year-to-date gain of approximately 43.1%, compared to the average gain of 18.4% in the Finance group [4] - The Zacks Rank for Galaxy Digital Inc. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - Over the past three months, the Zacks Consensus Estimate for GLXY's full-year earnings has increased by 24%, reflecting improved analyst sentiment [4] Group 2 - Galaxy Digital Inc. is part of the Financial - Miscellaneous Services industry, which has seen a decline of about 8.5% year-to-date, further highlighting GLXY's strong performance within this group [6] - Another Finance stock, UWM Holdings Corporation (UWMC), has also outperformed its sector with a year-to-date return of 32.4% and a Zacks Rank of 2 (Buy) [5][7] - The Financial - Mortgage & Related Services industry, to which UWM Holdings belongs, has gained 41.7% since the beginning of the year, indicating a positive trend in that sector [7]

Core Insights - UWM Holdings Corporation's stock has experienced a year-over-year loss, declining approximately 25% in 2025, raising concerns about insider selling at low prices [1][2] - Mat Ishbia, the President and CEO, has been selling shares since December 2025, reducing his indirect holdings from 9.85 million to 4.42 million [1][2] Company Overview - UWM serves independent mortgage brokers and correspondents in the U.S., focusing on the wholesale lending channel [2] Insider Transactions - On December 9 and 10, 2025, Mat Ishbia sold 1,224,574 shares for about $6.8 million, which represents 18.96% of his total holdings, leaving him with approximately 4.96 million shares [4][5][3] - The transaction size aligns with Ishbia's historical median sell size of 1,200,108 shares, indicating consistency in his trading behavior [3] Market Context - The sale occurred during a period when the stock had a one-year total return of -10.93%, suggesting that the timing was not advantageous [2] - UWM is set to complete its acquisition of Two Harbors Investment Corp. in Q2 2026, but the company is facing a revenue decline for FY2025, marking the first such decline in three years [6]

Core Insights - The stock of UWM Holdings Corporation has underperformed, with a year-over-year loss and a decline of approximately 25% for the entire year of 2025 [1][2] - Mat Ishbia, the President and CEO, has been selling shares since December 2025, reducing his indirect holdings from 9.85 million to 4.42 million [1] Company Performance - UWM serves independent mortgage brokers and correspondents in the U.S., focusing on the wholesale lending channel [2] - The stock experienced a one-year total return of -10.93% on the day of Ishbia's sale, indicating poor timing for capitalizing on stock strength [2] Insider Transactions - Ishbia sold 1,224,574 shares for approximately $6.8 million on December 9 and 10, 2025, through his holding company, SFS Holding Corporation [4][5] - This sale represents 18.96% of Ishbia's total holdings, leaving him with 4,955,547 shares indirectly held [3] Future Outlook - UWM Holdings is set to complete its acquisition of Two Harbors Investment Corp., a real estate investment trust, expected in the second quarter of 2026 [6] - The company is facing a year-to-year revenue decline for the first time in three years, raising concerns about its long-term outlook [6]

Group 1 - UWM Holdings Corporation is considered one of the cheap stocks to buy for the next 3 years, with Goldman Sachs lowering its price target to $5 from $6 while maintaining a Neutral rating [1] - Goldman Sachs anticipates a multi-year fundamental recovery for UWM Holdings driven by steady loan growth, net interest income momentum, and positive operating leverage, despite credit risk being a primary uncertainty [1][3] - The company announced a definitive merger agreement to acquire Two Harbors Investment Corp. for approximately $1.3 billion in equity, which will nearly double its mortgage servicing rights portfolio [2] Group 2 - The merger is expected to generate around $150 million in annual cost and revenue synergies, while also increasing UWM Holdings' public float by 93% to approximately 513 million shares, valued at $2.6 billion as of mid-December 2025 [3] - The combined servicing book post-merger will be roughly $400 billion, positioning the merged entity as the 8th largest mortgage servicer in the US [2][3] - UWM Holdings originates, sells, and services residential mortgage lending in the US, indicating its significant role in the mortgage industry [4]

Market Overview - Stock futures are modestly higher following the December nonfarm payrolls report and ahead of a Supreme Court decision on President Trump's tariff policy [1] - Major indexes have shown resilience early in 2026 after a strong finish to 2025, but gains have faced headwinds due to cooling tech momentum and uncertainty around labor data affecting Federal Reserve policy expectations [1] Sector Performance - Defensive sectors such as energy and mining have demonstrated relative strength, while value-oriented and cyclical areas are gaining attention amid market rotation [2] - Safe-haven assets like gold have seen increased demand as risk sentiment fluctuates [2] Pre-Market Trading - In pre-market trading, S&P 500 futures rose by 0.33%, Nasdaq futures increased by 0.42%, and Dow futures were up by 0.32% [2] Company Movements - Oklo (OKLO) is up 18% after announcing an agreement with Meta Platforms (META) to develop a 1.2 GW power campus in Pike County, Ohio [5] - Vistra (VST) increased by 17% after entering into 20-year purchase power agreements to provide over 2,600 megawatts of zero-carbon energy from three nuclear plants for Meta's operations [5] - Intel (INTC) rose by 2% following President Trump's positive remarks about a meeting with CEO Lip-Bu Tan [5] - Offerpad Solutions (OPAD) surged by 48%, LoanDepot (LDI) increased by 16%, Opendoor Technologies (OPEN) rose by 11%, Rocket Companies (RKT) was up by 6%, and UWM Holdings (UWMC) also increased by 6% [5] - Conversely, Aquestive Therapeutics (AQST) fell by 37% after the FDA identified deficiencies in its Anaphylm NDA, while AXT Inc. (AXTI) dropped by 14% after cutting its Q4 revenue outlook [5]